ATG has adopted the American Land Title Association (ALTA) Homeowner's Policy of Title Insurance for a one-to-four family residence, as last revised by ALTA on 02-03-10, for use on transactions involving Indiana land. To issue this policy, please observe the following underwriting guidelines, promulgated by ATG:

1.      Issue only on land located in the state of Indiana.

2.      Issue only if each insured is a natural person or a trustee of a revocable living trust.

3.      Verify the property is a lot in a plat of subdivision, improved with a one-to-four family residence, or a residential condominium unit. Do not issue for manufactured housing or mobile homes. The subdivision or condominium plat should be one that is already recorded and, if new and this is the first sale of a lot or unit, then a plat that has been approved by the ATG Underwriting Department.

4.      This policy may not be issued if the minerals have been severed or leased.

5.      Issue only to bona fide purchasers paying full value for the land, not on gifts, inter-family conveyances, or to existing owners.

6.      Verify the lot has access, using tax maps and the plat of subdivision or condominium.

7.      Verify by tax/assessment search that the property is a single-family residence with the address listed in the order for title insurance and contract. Do not show the zip code.

8.      Obtain a boundary survey or an Affidavit in Lieu of Survey, ATG Form 3001, for the property to be insured. Use usual survey guidelines to review the survey or Affidavit in Lieu of Survey and raise Schedule B exceptions for evidence of use, easements, setbacks, and encroachments of all kinds. Contact the ATG Underwriting Department for approval to insure over encroachments.

9.      Obtain an ALTA Statement, signed by the sellers and notarized. Raise Schedule B exceptions for any adverse information it reveals.

10.   Obtain a Homeowner’s Policy of Title Insurance Affidavit, signed by the sellers and notarized. Raise Schedule B exceptions for any adverse information it reveals.

11.   Review all restrictions, covenants, and conditions on title and raise any violations on Schedule B as specific exceptions. In addition, raise an exception for the terms of the restriction, covenant, or condition, in general.

12.   Raise separate exceptions for any restriction, covenant, or condition that could result in a forfeiture or reversion of title.

13.   Obtain a letter from the homeowners’ or condominium association, waiving any right of first refusal, confirming there are no known restrictions violations, and confirming that all assessments are paid through the date of closing, or providing a payoff amount through that date.

14.   Confirm that the tax bill includes all improvements located on the land and that it properly reflects the status of the current owner. If there will be tax increase because the property has been under-assessed because of new construction, change in the tax designation or a change in the exemptions, raise the exception for the under-assessment as a Schedule B exception.

If you have any questions, please contact the ATG Underwriting Department.